Globalization and international trade have led to increased emissions as factories have moved to developing countries with less strict environmental regulations. China in particular exports over a third of its goods and has become the world's largest carbon emitter due to its coal-dominated energy system and large trade surplus. While China's exports consist mainly of less carbon-intensive goods like textiles rather than steel, countries importing from China are effectively outsourcing their emissions. One proposed solution is a border tax adjustment for imports into regions with emissions caps to make costs more evenly distributed.

1. Climate ConnectionsTrade, Climate Change, and Sustainability By ZacLiptak

2. Globalization describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and trade. (Dictionary.com) Through an increase in globalization, international trade has continued to increase and so do emissions. Even though many believe global environmental challenges could be solved with international cooperation such as climate change and air pollution, since many factories are built in developing countries with less environmental regulation, globalism and free trade may increase pollution.

3. China and Trade Emissions in traded goods have often been highlighted as a challenge. Specifically, China, with no binding emissions target, is manufacturing many of these goods. Exports in China alone accounts for more than 1/3 of their total economic output. Because China exports so much, the world is relying on importing their goods and “exporting carbon” to this nation to meet carbon reduction targets.(State of the World pg 88)

4. Carbon Emissions from China’s Net Exports and Total Emissions from Selected Countries, 2004 http://uk.video.yahoo.com/watch/1479605/5043195

5. China and Trade (Continued) Due to the fact that China’s energy system is coal-dominated and their large trade surplus, their CO2 emissions are through the roof. It is also found that industrial countries are responsible for a large portion of China’s CO2 emissions and that these countries need to help developing countries reduce their emissions by technical and financial assistance. (State of the World 88)

6. China and Trade (Continued) Although you may think that China’s emissions come from things like steel and cement, their exports mainly consist of textiles, footwear and electronics which are not as carbon-intensive.

7. Border Tax Approach This approach to reducing emissions would be to impose border tax adjustments on goods brought into countries or regions with emissions caps. This idea would internalize the represented carbon cost of imports and would make everyone even with respect to goods produced domestically.

8. Conclusively…. It is important to make sure trade is more ethical and environmentally friendly and that cost and benefits are more fairly distributed.